Samsung sprints from the competitors in the booming semiconductor market – but in 2019 comes the downturn

The global market for semiconductors has experienced wild growth in recent years, but a tough slowdown can be on the way, says the analysis house Gartner.

Samsung is increasing its lead in the global market for semiconductors, which have seen great growth over the past two years.

This shows a new study from the IT analysis house Gartner.

According to the survey, Samsung Electronics’ semiconductor business grew by 26.7 percent in 2018 compared to the previous year, and Samsung is now 15.9 percent of the market.

“Samsung Electronics has increased its lead as the world’s leading semiconductor supplier, and this is due to the booming DRAM market,” said Andrew Norwoord, an analyst and vice president at Gartner, according to a press release.

Intel is second largest

US chip giant Intel takes second place and the company’s semiconductor business experienced in 2018 experienced a 12.2 percent growth over the previous year. Intel is now 13.8 percent of the market.

In third place, we find South Korean SK Hynix, which has experienced growth of 38.2 percent and is now sitting at 7.6 percent of the global semiconductor market.

According to Gartner, the global market for semiconductors was $ 476.7 billion in 2018, an increase of 13.4 percent compared to 2017.

According to the analysis, 34.8 percent of the revenue from the semiconductor market comes from memory chips.

Weakened demand in 2019

However, according to Gartner, the demand for memory chips was weakened at the end of 2018, and Gartner predicts that this trend will continue into 2019.

That, according to Gartner, means that semiconductor industry companies need to prepare for a future where an oversupply of memory chips will lead to rising price pressure.

“2019 will be a significantly different market than what we have seen in the past two years. Demand for memory chips is already hit by a downturn, and at the same time a trade war between the United States and China is lurking on the horizon, creating increased uncertainty about the global economy, ”said Andrew Norwood in a press release.

We saw the first signs of a slowdown last week, when Apple for the first time Since 2002, its sales expectations have been revised downwards in the current quarter.

Downward adjustment is expected to have major consequences for a large number of companies in the semiconductor and component industries.